BlackBerry maker Research In Motion
(RIMM) reports May quarter (1Q09) results today after the bell.
Investors have recently taken a liking to RIM: Shares are up 8%
since June 12, and up 25% since the end of March. May quarter
sales should have been strong. But with new BlackBerry models --
and Apple's (AAPL) iPhone -- due out next quarter, we're most
interested in RIM's Q2 guidance.

We'll cover RIM's earnings today with LIVE analysis following the
release (around 4 p.m. ET) and LIVE coverage and analysis of the
conference
call, beginning at 5 p.m. ET.

The good news for RIM: Sales have been strong, especially the
Curve via Verizon Wireless,
according to Lehman. And new toys coming out in the next few
months -- the Bold at AT&T (T), the touchscreen Thunder at
Verizon -- should help, too. Analysts have recently raised
estimates above consensus.

The bad news:
Apple's iPhone 3G comes out on July 11 in the U.S. and more
than 20 other countries. Apple will add 50 more countries this
year. It's $199 -- 50% less than it used to be -- and includes
direct access to Exchange email servers, which will allow
corporate users to replace RIM's machines if they want to do so.
Companies will take a while to switch from RIM, if they ever do.
But consumers -- which RIM increasingly counts on for growth --
may flock to the cheaper, more sophisticated iPhone 3G.

Bottom line: We think there's plenty of room for both Apple and
RIM in the fast-growing smartphone market. So we think a beat and
raise is likely, which will send RIM's stock up. But if RIM's Q2
guidance comes in below consensus -- $0.90 on $2.44 billion of
sales -- look out.

Recommended For You
Powered by Sailthru

Expectations are high for RIM, which should have had a great quarter. Its August quarter guidance -- ahead of both new BlackBerries and Apple's iPhone -- is most important. But we think there's a good chance RIM will blow out consensus, sending shares up.